Nowadays, it’s almost impossible to open your email or surf online without stumbling across ads that might attempt to help you fix your credit status. Companies that pledge instant and remarkable improvements to your credit are somehow too good to be legal. While there are some legit ‘credit repair’ firms, only few are really reliable.
Popularity of Credit Fixing Companies
These days, with credit at a premium, families are suddenly finding that they may be rejected for credit cards and other debt instruments. In this case, the temptation to pay for credit-fixing strategies can be really high. While there are steps that consumers can take to repair bad credit, all of these steps require little to no money, just time. There’s usually no reason to pay someone to do these things for you, and no one can or should promise to improve your credit. The majority of these credit repair company offers cost significant money, and they often are unable to deliver on their grand promises.
Methodology of Credit Fixing
Furthermore, these credit repair companies often recommend or use fraudulent and illegal methods to repairing credit. For example, some companies will send multiple credit disputes of negative (but accurate) records to the credit reporting agencies, claiming that information is incorrect, under the law that information must be verified as accurate within 30 days or should be removed from your record. This is illegal–accurate, negative information should not be disputed, and this information can be added back to your record once it’s verified as accurate.
Another fraudulent method is to recommend that you open a new social security number or employer identification number. This is also illegal and fraudulent and definitely does not work.
Various websites offer recommendations on how to recognize a credit repair scam. Beware companies that require money up front and recommend that you do not contact credit agencies yourself, among other things.
Polishing Your Credit Status
If you really wish to repair your credit stance, then you have the personal option to do so. Pay off existing debts so that moneylenders can clear your status. On the other hand, you can apply for credit builder loans and ensure that these loans are repaid. After paying off these loans successfully, your credit will start building up.
Relying on the support of credit-fixing organizations is not a wrong move, as long as you’ve done your research. Always inspect the reputation of the firm so that you won’t waste your money ever!